Home »Malaysia Re-Energising Economic Ties With India - Mustapa
NEW DELHI, May 2 (Bernama) -- India, a fast growing economic force in Asia and an important trading and economic partner of Malaysia and Putrajaya, aims to elevate it further by re-energising ties amid the immense potential available between the two nations.
In 2015, India was Malaysia's 10th largest trading partner with total trade amounting to US$12.02 billion. India's economy grew by 7.3 per cent during 2014-2015.
Malaysia's cumulative investment in India amounted to US$4.057 billion while India's approved investments in Malaysia between 2011-2015 stood at US$607.7 million.
"Malaysia has a strong presence in India, especially in the infrastructure sector. At the same time we also want Indian companies to invest in Malaysia," Minister of International Trade and Industry Datuk Seri Mustapa Mohamed said at a business opportunity seminar in Malaysia here today.
Malaysia offers political and economy stability, good infrastructure and a solid banking system, which would benefit investors.
Indian companies can also strengthen their presence in the region including through mergers and acquisitions, the minister told about 170 participants from key sectors and conglomerates in this Indian capital.
Mustapa is leading a seven-day trade and investment mission to Delhi, Vijayawada and Hyderabad in India and Colombo, Sri Lanka.
Present were Malaysian High Commissioner to India Datuk Naimun Ashakli Mohammad and Malaysian Investment Development Authority Deputy Chief Executive Officer II Datuk N. Rajendran.
Mustapa cited the manufacturing sector, which allows 100 per cent foreign stakeholding, chemical and chemical products, textiles and textile products, pharmaceutical as well as machinery and equipment which were open for foreign investments.
Other sectors included the healthcare service, education, centre of excellence and tourism.
"Indian companies are also encouraged to be a key player in Malaysia's development of sustainable digital economy such as Information and Communication Technology and e-commerce," he said.
Mustapa said Indian companies can also make Malaysia their gateway hub to the ASEAN region which has a market of about 600 million people.
Besides, there is also strong air connectivity between the two countries enabling closer relations between the two countries.
"Malaysia's flag carrier has 63 flights per week connecting all major cities in India, namely Delhi, the financial capital Mumbai as well as Chennai, Tamil Nadu down South, while the low cost carrier, AirAsia, and hybrid-airline, Malindo, flies 77 times and 41 flights to the country," he said.
In total there are more than 200 flights between the two countries, he said.
During a question and answer session, Mustapa also said Malaysia promoted women entrepreneurs and they were also most welcome to venture into Malaysia.
"Women are integral part of Malaysia's trade, investment and business in our country and you are most welcome to venture," he said when asked if Malaysia encourage women entrepreneurs.
On the food processing sector, Mustapa said Malaysia was not a major player as yet but investments were most welcomed.
Malaysia's total exports to India stood at US$8.12 billion in 2015 while imports amounted to US$3.90 billion.
Major products exported to India were palm oil and palm-based products (25.8 per cent), electrical and electronic products (16.8 per cent), crude petroleum (16.1 per cent), chemical and chemical products (9.7 per cent) and manufacture of metal (9.5 per cent).
While products imported from India were agriculture (28 per cent), metal manufactures (27 per cent), petroleum products (24 per cent), chemicals and chemical products (14 per cent) and electrical and electronic products (seven per cent).